The Los Angeles Department of Cannabis Regulation (DCR), through its Compliance and Enforcement Division (CED), continues to prioritize inspections of non-retail cannabis licensees. DCR outlined the most common issues inspectors come across and highlighted best practices for cultivation, manufacturing, distribution, and delivery operations.
Compliance Requirements for All Non-Retail Licensees
All non-retail cannabis businesses must maintain current local and state authorizations, such as DCR – City License, DCC – State License, a Business Tax Registration Certificate, an LAPD police alarm permit, and correct neighborhood liaison contact information. All staff must wear ID badges during operations that clearly display the business name/DBA, DCR record number, employee name and ID number, and a recognizable photograph.
Video Surveillance and Record Retention
DCR inspections include a review of surveillance systems as well. Cameras must operate continuously, be permanently installed, and retain footage for at least 90 days. A failure-notification feature should also be installed that alerts the licensee if recording or storage is interrupted.
Business Premises, Access Logs, and Prohibited Activities
Inspectors will compare the approved premises diagram with the physical site. All rooms, operational areas, and cameras must be accurately reflected in the diagram.
Limited-access areas should be labeled and non-employees entering limited-access areas must be logged, with records showing the individual’s name, company, purpose of entry, and times in and out. These logs must be available upon request and retained for at least three years.
Cultivation-Specific Inspection Issues
For cultivation license holders, inspectors closely review canopy size calculations, including vertical grow configurations, ventilation and odor control systems, plant tagging, and room labeling. Tags must remain with plants and products throughout processing based on the specific Metrc requirements.
Distribution, Manufacturing, and Delivery Inspection Issues
During distribution and manufacturing inspections inspectors expect to see UID tags physically associated with product and corresponding testing results, invoices, and Metrc transport documents readily accessible.
Delivery licensees must maintain compliant delivery receipts, properly register all delivery vehicles with DCR, and display a valid Delivery Vehicle Placard in each vehicle. Vehicles must be enclosed, GPS-tracked with approved devices, and operated in a manner that keeps cannabis products out of public view.
If you have questions about non-retail cannabis inspections or need assistance preparing for a DCR compliance inspection our experienced team can help assess your operations.

